Even as the secondary mortgage market made its first bold foray into the world of Web-based trading last week with the alliance of Deutsche Bank Alex. Brown and Internet-based secondary mortgage market trading platform pedestal.com, competitors and market observers alike are wondering whether such a move was premature, viable - or even beneficial for the mortgage-backed securities industry.

The new alliance - in addition to an upcoming multi-dealer platform for Pedestal Inc. which will include unions with other Wall Street banks - will enable customers to buy and sell to-be-announced MBS securities in a competitive bid-ask market via pedestal.com, with Deutsche Bank as the market-maker. The alliance will be an extension of Deutsche's MBS Autobahn program, which launched in October but only dealt with 15- and 30- year Freddie Mac, Fannie Mae and Ginnie Mae passthroughs, and will reportedly bring about greater price transparency, speed and efficiency in MBS trading.

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